Homebuying Support Hub

Area Median Income (per HUD guidelines)

Represents the amount of money a person earns in one year from all sources before taxes.

An assessment of a property's value to determine its worth for potential buyers and lenders.

Assets include all bank or financial accounts, whether in cash, equity in real estate, investment funds, cryptocurrency, funds in cash apps, gift funds and gifts of equity, or any other item of value. The only exceptions are government-approved retirement funds, Roth IRAs and college savings plans. If a retirement plan or college savings plan is to be liquidated to support the home purchase, only then will it be added to the asset calculation.

A legal advisor who ensures legal compliance and protects client interests during property transactions.

The expenses over and above the property's price that buyers and sellers incur to complete a real estate transaction (for example, loan origination fees, discount points, appraisal fees, and credit report charges).

The Declaration, the By-Laws, and any other agreements or documents relating to the establishment, ownership, membership, management, use, or operation of the Condominium.

A ratio that compares the total amount of all loans secured by a property (such as a first mortgage and a second mortgage or home equity loan) to the value of the property.

A clause in a purchase agreement specifying an action or requirement that must be met for the contract to become legally binding.

A financial measure that lenders utilize to measure a person's total debt to their gross income.

A deed-restricted property refers to a property with specific limitations on its use or transfer, as outlined in the property's deed. These restrictions, also known as restrictive covenants, are legally binding agreements that dictate how the property can be used, built upon, or even resold.

An amount of money that a government or other institution gives to an individual or to an organization for a particular purpose such as education or home improvements.

For first mortgages, High APR is defined as an APR that is three (3) percentage points or more above the rate for a U.S. Treasury note with the same maturity. For second mortgages, High APR is defined as five (5) percentage points or more above the Treasury rate. 

For reference, the Federal Financial Institutions Examination Council (FFIEC) rate spread calculator can be used to determine whether your loan's APR is above the corresponding U.S. Treasury note rate. View the rate spread calculator.

 

Household Member will be defined, at the time of application, as:

• Persons regularly living together, related by blood, marriage, adoption, guardianship or operation of law;
• Or those who are not so related but share income and resources and intend to occupy the unit as their primary residence. 

Legally married couples shall both be considered part of a household. However, if an individual is "separated," the spouse will not be considered part of the household if the applicant can sufficiently document that the spouse is living separately. Individuals purchasing together, i.e., co-buyers who are currently living in separate households, will, for the application, be considered household members. Or those who are unrelated but share income and resources and intend to occupy the unit as their permanent primary residence.

The Mayor's Office of Housing will consider other circumstances that do not meet this definition if sufficient documentation and/or notarized affidavits are provided. The Mayor's Office of Housing may also require additional documentation to ensure compliance with the program's intent. 

Applicability of This Definition: This policy applies to eligibility certifications undertaken at any point during the purchase process. This definition does not apply to lotteries.

The combined income of all persons who intend to live in the dwelling. Income sources include, but are not limited to:

• The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services
• Interest, dividends, and other net income of any kind from real or personal property
• The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts
• Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay
• Welfare assistance payments
• Periodic and determinable allowances, such as alimony and child support payments and regular contributions or gifts received from organizations or from persons not residing in the dwelling;
• All regular pay, special pay, and allowances of a member of the Armed Forces

Market rate housing is housing that is priced based on the prevailing market conditions, rather than being subsidized or restricted.

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

The Nationwide Mortgage Licensing System (NMLS) is a centralized online database that mortgage and finance regulatory agencies use to maintain state licensing programs.

A fee that a lender may charge if the borrower pays off their loan, either in part or in full, before the maturity date. This fee helps the lender make up for the interest they would have earned if the loan had been paid off over the full term. 

It is important to know about any prepayment penalties before agreeing to a loan, especially if you plan to pay off the loan early, refinance the loan, or sell the property. Some loans have a "soft" penalty (applies only if you refinance) or a "hard" penalty (applies to any early repayment). Prepayment penalties are usually referenced in the loan agreement.

A ratio that compares the amount of a loan to the value of the property being bought or refinanced.

A document containing the key legal details and history of a piece of property found during a title search.